Kratos Defense & Security Solutions, Inc., a technology company, provides technology, hardware, products, system, and software for the defense, national security, and commercial markets in the United States, other North…
FAIL · Does not pass the screen
33.39 USD
Price as of 5 Nov 2026Daily close, not a live quote
Screened 2026-11-05 · the tape above runs as of 02:02 UTC · two dates, stated on purpose · verdict and workings shown in full · never trimmed
Key facts today
Price33.39 USD at the 5 Nov 2026 close
Our value readUndervalued vs our fair value, as of 5 Nov 2026
Positioning no disclosures inside 60 days, left as found
Options put/call open interest 0.50, read 2026-11-01
Ethical does not pass the values gate
Price33.39 USD
Fair value53.84
Ethical score30.0/100
Value readUndervaluedas of 5 Nov 2026
Our investment reviews on this name
2026-11-04Read Markdown40.99-18.5% to today ✓Accumulation gives way to Markdown first Markdown read since October
2026-11-01Read Accumulation41.09-18.7% to today Markdown gives way to Accumulation
2026-10-02Read Markdown43.05-22.4% to today ✓Markup gives way to Markdown after a 19% slide in 4 weeks
2026-09-03Read Markup53.07-37.1% to today Distribution gives way to Markup after a 15% rise in 4 weeks
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Kratos Defense & Security Solutions Inc holds its Distribution at $33.39. Consolidating, no directional conviction, held for 39 days.
As held on the ledger · 2026-11-05
Phase
Distribution · caution
Quantitative state
Consolidating, no directional conviction, held for 39 days
Price at the screen
$33.39
Valuation
241.12 trailing · 36.16 forward price to earnings
Values screen
FAIL· score 30.0
Beta
1.17
The Workings
Five Screens, Shown in Full
Does not pass. Excluded industry: Aerospace & Defense
Test
Figure
Limit
What it means
Status
Business activity
Excluded
Core business clean
Excluded industry: Aerospace & Defense
Fail
Debt load
Excluded
Below 33%
Interest-bearing debt is of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
Excluded
Below 33%
Interest-bearing cash and securities are of assets, above the one-third limit.
Fail
Receivables
Excluded
Below 49%
Money owed to the company is of assets, above the 49% limit.
Fail
Revenue purity
Excluded
Below 5%
of revenue comes from non-compliant sources, over the 5% line.
Fail
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Kratos Defense & Security Solutions does not clear the screen at the business-activity stage. It operates in aerospace and defense, so the financial ratios are not the deciding factor here.
Read as at 2026-11-05. It updates when the underlying figures move, and past reads are kept below.
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Get an email when KTOS's ethical verdict changes
Today KTOS does not pass the screen. If new figures move it to a pass, we send you one short email with the before and after. Verdicts change rarely, so you may not hear from us for a long time.
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What the Numbers Say It Is Worth
The Fair Value Range
Our analysis reads Undervalued vs our fair value, as of 5 Nov 2026: it trades at roughly a 38% discount to our $53.84 fair value, narrow competitive moat, 30.50% revenue growth.
Fair value range in USD, drawn from the 2026-11-05 screen. The gold marker is the market price at the same screen. A 38.0% discount to the base estimate.
Where our models see it going: fair-value estimate $53.84, with a range of $45.00 to $61.91, dated to the 2026-11-05 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Kratos flies in a sector we screen out
Kratos makes the unmanned systems and electronic warfare gear that modern militaries rely on. That places the business squarely inside an excluded industry, so the ethical screen ends the conversation before valuation or growth enter the picture. We pass.
The company shows 23% revenue growth and trades at a 42x forward earnings multiple against a 2% profit margin and 1% return on equity. Narrow moat and 21 analysts calling for strong buy do not change the industry exclusion. The numbers can look attractive on paper, yet the screen exists for a reason.
Ignoring the ethical filter would expose the portfolio to sectors that create long term reputational and regulatory drag. Analysis, not advice.
Another profit measure, before interest, tax and non-cash costs: EBITDA.
The risks · The main risks here are ordinary market swings and the chance our fair-value read proves too optimistic.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
KTOS trades on NASDAQ. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-11-05Markdown$35.96-12.3%Entry 16
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 12.3% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are up 39%. Our forward projection puts the odds of a 10% gain over the next month near 41%. The street (20 analysts) rates it buy, with a mean price target of $112. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-11-04Markdown · changed$40.99-0.2%Entry 15
The framework has shifted from accumulation to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.2% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are up 39%. Our forward projection puts the odds of a 10% gain over the next month near 41%. The street (20 analysts) rates it buy, with a mean price target of $112. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-11-03Accumulation$41.09+0.0%Entry 14
The analysis reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are up 39%. Our forward projection puts the odds of a 10% gain over the next month near 41%. The street (20 analysts) rates it buy, with a mean price target of $112. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-11-02Accumulation$41.09+0.0%Entry 13
The analysis reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are up 39%. Our forward projection puts the odds of a 10% gain over the next month near 41%. The street (20 analysts) rates it buy, with a mean price target of $112. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
The framework has shifted from markdown to accumulation since the last review. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved up 6.2% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are up 39%. Our forward projection puts the odds of a 10% gain over the next month near 41%. The street (20 analysts) rates it buy, with a mean price target of $112. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-31Markdown$38.68+0.0%Entry 11
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are up 39%. Our forward projection puts the odds of a 10% gain over the next month near 41%. The street (20 analysts) rates it buy, with a mean price target of $112. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-30Markdown$38.68+0.0%Entry 10
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are up 39%. Our forward projection puts the odds of a 10% gain over the next month near 41%. The street (20 analysts) rates it buy, with a mean price target of $112. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-29Markdown$38.68-4.3%Entry 9
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 4.3% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are up 39%. Our forward projection puts the odds of a 10% gain over the next month near 41%. The street (20 analysts) rates it buy, with a mean price target of $112. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-23Markdown$40.42+0.2%Entry 8
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved up 0.2% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are up 39%. Our forward projection puts the odds of a 10% gain over the next month near 41%. The street (20 analysts) rates it buy, with a mean price target of $112. Insiders have been net sellers over the past quarter.
2026-10-16Markdown$40.35-6.3%Entry 7
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 6.3% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is momentum reading bullish. Over the past year the shares are up 39%. Our forward projection puts the odds of a 10% gain over the next month near 41%. The street (20 analysts) rates it buy, with a mean price target of $112. Insiders have been net sellers over the past quarter.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
